What it does
IH 00 78 insures the property described in the declarations for a specific trip. Coverage applies while the property is in the custody of a carrier or messenger for hire until delivered (or returned if not delivered), including temporary storage before delivery, and while on a vehicle the insured owns or operates from the time it leaves the shipping premises until it arrives. ISO publishes this form in its IH series of commercial inland marine forms. IH forms are used within the Commercial Inland Marine Coverage Part, together with the Commercial Inland Marine Conditions (CM 00 01) and the Common Policy Conditions. The description follows the 12 13 specimen; carriers have filed a 12 18 edition.
Who needs it
Shippers with an occasional high-value movement that their regular property policy will not cover in transit, such as a manufacturer shipping one large machine or a business relocating equipment. Regular shippers buy annual transit (IH 00 71) instead.
Key provisions
- Not covered: money, securities and documents; jewelry, precious metals, live animals and works of art unless specifically scheduled; contraband.
- Exclusions: denting, chipping, marring or scratching; delay and loss of market; dishonest acts; theft, except theft of property entrusted to carriers for hire or of an entire shipping package; neglect; wear, latent defect, mechanical breakdown, insects, rust, dampness and extremes of temperature.
- Coverage territory: the United States, its territories, Puerto Rico and Canada, including air shipments between them.
Quoting and selling notes
Ask for the route, dates, carrier, packing method and value; explain the scratching and temperature exclusions for fragile or temperature-sensitive goods. Carriers' own liability under bills of lading is often limited, so shipper-interest coverage protects the owner.
